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Market Overview

Things Are about to Get Exciting

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Things Are about to Get Exciting

Introduction

This article was posted on Wednesday, 10:56, UTC.

Less than a week after announcing that we’re moving to the blockchain, we have another exciting product update for you today.

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Pages for $DASH, $LTC, $ETC, and $XRP are now taggable on the eToro social investment network!!

The number one request from our clients has been to open up access to more cryptomarkets, so here it is. Please note, that these instruments will not immediately be available for individual trading. As many of these markets have very low liquidity it will take a while before we are able to act as your market maker and guarantee instant transactions.

However, as the main purpose is for investing, the first use will be as part of a Copyfund that will allow you to gain exposure to a wide array of crypto assets.

The aptly named CryptoFund is also up on the platform and should be available for investment shortly. Just to be able to tag these new markets on my wall was a big pleasure for me.

Mati Greenspan
eToro, Senior Market Analyst

 

Please note: All data, figures, and graphs are valid as of June 7th. All trading carries risk. Only risk capital you can afford to lose.

Market Overview

Today’s gonna be a strange day in the market mainly because of so much anticipation for tomorrow. In addition to the UK Elections, we’ll have a critical speech from the European Central Bank’s Mario Draghi, and a rare testimony from the former FBI director James Comey, you know the guy who Trump fired for being unfair to Hilary Clinton.

Comey is set to spill the beans about his conversations with the President in front of Congress and the world tomorrow afternoon. Depending on what he says, the markets could get volatile. President Trump will not be attending the event but rumor has it he will be live tweeting his thoughts.

The issue for investors is whether this whole Trump-Russia scandal will impair Donald’s ability to bring them infrastructure spending, as well as healthcare and tax reform. So the dicier things get the bigger impact we can expect.

The US Dollar is already feeling the Trump squeeze and falling steadily since the beginning of the year.

The stock markets, on the other hand, were performing swimmingly this year as the only thing they seem to care about is future profitability if and when Trump delivers on his promises. To be fair, small business are feeling incredibly confident at the moment.

Volatility on the stock markets has been muted since the French Elections (red circle), with the exception of May 17th when markets briefly sold off on Trump related worries.

This chart shows the VIX volatility index for the past three months. For reference, a reading below 11 points represents historically low market movement.

Reading the markets we can see a clear flight to safe haven assets.

Gold is at it’s highest levels since the night of Trump’s election (white circle). Currently, it is running into heavy resistance at $1300. If it pushes through that…

The other major flag of safe haven attitude is the action on USDJPY, which has been pushing lower since mid-May and spiked below 109.25 this morning.

Another reason for fear is the declining price of oil. It’s not an issue yet but if the price remains below $50 for an extended period or if it gets much lower, it could be seen as a weakness in the global economy.

The crude oil inventories are coming out this afternoon so be sure to watch closely.

FCC on BTC

Over the past 24 hours we’ve seen new all time highs on Bitcoin and Ethereum. The daily charts for both are looking quite impressive at this point.

The prices certainly could truck further but any retracement could also be very dangerous at this point as this is an extremely risky market.

The Japanese exchange Bitflyer has upped their volume significantly yesterday and at one point had logged 132,000 BTC traded in a 24 hour window.

The revolution is happening there and several supermarkets in the country are already accepting Bitcoin as payment for groceries. Exciting times indeed!

Tomorrow, in addition to all the action in the traditional markets crypto-markets could be moved by a hearing from the FCC in the United States. They have several blockchain experts who will lecture the US government on Financial Innovation and National Security Implications of Virtual Currencies.

Let’s hope we see more integration in more places. 🙂

Have an amazing day ahead!

This content is for information and educational purposes only and should not be considered investment advice or an investment recommendation.
Past performance is not an indication of future results. All trading carries risk. Only risk capital you’re prepared to lose.

Important: Never invest money you can't afford to lose. Always do your own research and due diligence before placing a trade. Read our Terms & Conditions here.



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Mati Greenspan

Mati Greenspan

https://www.etoro.com/

Senior Market Analyst at Etoro.com.

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